Some interesting observations in today's Chart of the Day from Deutsche Bank's Jim Reid.
According to the bank's head of thematic strategy, the economic story of this century thus far has been the extraordinary rise of China: China’s share of world GDP has gone from 2% in 1990 to a peak of 18% in 2022. More recently, US outperformance has seen it claw back share from a post-GFC low of 21% to 27%. In comparison, Europe and the Global South have moved sideways in recent years.
But things are changing. Some of the foundational conditions of China’s one-way rise are getting challenged: a reduced global willingness to absorb Chinese goods, demographic decline, and need to pivot to more sustainable growth.
